Public Limited Company

According to the Companies Act, 2013, a Public Limited Company is a separate legal entity where shareholders have limited liability based on the shares held by them.

A public company can raise capital from the general public through an Initial Public Offering (IPO) and secondary market trading.

Public Limited Companies are regulated by the Ministry of Corporate Affairs (MCA) and are ideal for businesses seeking large investments and expansion opportunities.

Basic Requirements

Advantages

• Larger Capital: Can raise huge capital from unlimited shareholders.
• Efficient Management: Managed by experienced professionals and directors.
• Free Transferability: Shares can be transferred easily.
• Higher Borrowing Power: Easier access to loans and investments.
• Limited Liability: Shareholders’ liability is limited to their investment.
• Separate Legal Entity: Company has a separate legal identity.
• Perpetual Existence: Company continues irrespective of ownership changes.
• Capacity to Sue: Company can sue and be sued in its own name.
• Property Ownership: Company can own and transfer assets.

Documents Required

• PAN Card for Indian Nationals.
• Passport for Foreign Nationals.
• Identity Proof of Directors and Shareholders.
• Address Proof of Directors and Shareholders.
• Passport Size Photographs.
• Board Resolution for authorization.
• Proof of Registered Office.
• Utility Bills of Registered Office.
• NOC from Landlord.
• DSC Form duly signed.

Registration Procedure

• Name Reservation: Approval of company name through MCA portal.
• DSC Application: Obtain Digital Signature Certificate for directors.
• DIN Allotment: Obtain Director Identification Number.
• Authority Approvals: Obtain approvals if required.
• Document Filing: Submit incorporation documents with ROC.
• Certificate of Incorporation: ROC issues registration certificate.
• PAN & TAN: Issued along with incorporation certificate.
• Bank Account Opening: Open current account in company name.